Rinoa Enterprises Ltd.
TSX VENTURE : RIN.P

October 13, 2006 18:32 ET

Rinoa Enterprises Ltd. and Paragon Pharmacies Ltd. Announce Shareholder Approval of Qualifying Transaction

CALGARY, ALBERTA--(CCNMatthews - Oct. 13, 2006) -

(Not for dissemination in the United States of America)

Rinoa Enterprises Ltd. ("Rinoa" or the "Corporation") (TSX VENTURE:RIN.P), a capital pool company, and Paragon Pharmacies Ltd. ("Paragon") are pleased to announce today that the previously announced qualifying transaction (the "Qualifying Transaction") involving Rinoa and Paragon was approved at the annual and special meeting of shareholders of Rinoa and special meeting of shareholders of Paragon where the holders of common shares of each of Paragon and Rinoa, present in person or by proxy at the meeting, voted unanimously in favour of the special resolution to approve the Qualifying Transaction, including receipt of majority of the minority approval. Closing of the Qualifying Transaction is expected to occur upon satisfaction of certain pre-closing conditions. In addition, shareholders of each of Rinoa and Paragon approved the appointment of Deloitte & Touche LLP as auditors of the resulting issuer and unanimously approved the stock option plan of the resulting issuer, as disclosed in the companies' joint proxy circular dated August 11, 2006.

In connection with the approval of the Qualifying Transaction, shareholders approved the change of the name of the amalgamated corporation's to "Paragon Pharmacies Limited" on closing of the Qualifying Transaction.

Completion of the transaction is subject to a number of conditions, including but not limited to TSX Venture Exchange acceptance. There can be no assurance that the transaction will be completed as proposed or at all.

Investors are cautioned that, except as disclosed in the Information Circular of Rinoa and Paragon prepared in connection with the transaction, any information released or received with respect to the Qualifying Transaction may not be accurate or complete and should not be relied upon. Trading in the securities of Rinoa should be considered highly speculative.

The TSX Venture Exchange has in no way passed upon the merits of the proposed transaction and has neither approved nor disapproved the contents of this press release.

Contact Information

  • Rinoa Enterprises Ltd.
    Randal Matkaluk
    President, Chief Executive Officer, Chief Financial Officer
    and a Director
    (403) 287-1340
    or
    Paragon Pharmacies Ltd.
    Craig Cameron
    President
    (250) 491-3936